Ord 1993-037 - Laserfiche WebLink

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(Z9EH accordance with the provisions of Article 717k, Vernon's Annotated Texas Civil Statutes, as amended. IT IS OUR FURTHER OPINION, that the Bonds have been authorized, issued and delivered in accordance with the Constitution and laws of the state of Texas and constitute valid and legally binding obligations of the City; that the Bonds are equally secured by and payable from ad valorem taxes levied upon all taxable property in the City, within the limit prescribed by law; and that the total indebtedness of the City, including the Bonds, does not exceed any constitutional or statutory limitation. BASED ON THE FOREGOING IT IS OUR FURTHER OPINION that interest on the Bonds wil1 be excludable from gross income under Section 103(a) of the Internal Revenue Code of 1986, as amended, and applicable regulations, published rulings and court decisions (col1ectively, the "Code"). It is our further opinion that the Bonds wil1 not be "private activity bonds" within the meaning of Section 141(a) of the Code. Accordingly interest on the Bonds will not be treated as a preference item under the alternative minimum tax provisions of the Code as applicable to individuals and corporations, except that interest on the Bonds will be included in the "adjusted current earnings" of certain corporations for purposes of computing the alternative minimum tax and the environmental tax imposed on such corporations. The statutes, applicable regulatiòns, published rulings of the Internal Revenue gervice and court decisions on which such foregoing opinions are based are subject to change. These opinions are dependent in part on future compliance by the City with certain post-issuance requirements of the Code, including the arbitrage rebate requirements. Failure to comply with such requirements may cause the interest on the Bonds to be includable in gross lncome retroactive to the date of issue. In this connection, various covenants and representations have been made by the City in the documents authorizing the issuance of the Bonds that are designed to provide 'assurance of compliance with such requirements, and for the purposes of these opinions, we assume compliance by the City therewith. In addition, such opinions are based upon representations and certifications of the City pertaining to the use, expenditure, and investment of the proceeds of the Bonds and are rendered in reliance upon the accuracy of the calculations contained in the report of KPMG Peat Marwick. Except as described above, we express no opinion with respect to any other federal, state or local tax consequences under present law or proposed legislation resulting from the receipt or accrual of interest on, or the acquisition, ownership or disposition of, the Bonds. Prospective purchasers of the Bonds should be aware that the ownership of tax-exempt obligations such as the Bonds may result in 4582f -2-